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DES MOINES, Iowa – Sept. 15, 2014 – More than two-thirds of Americans (68 percent) feel that it's a good time to buy a home – but many won't try because they think tighter mortgage rules have made them ineligible for a loan.

After the recession ended, the U.S. tightened lending rules to keep a similar meltdown from happening again. But stories about tighter requirements have led some creditworthy buyers to think they cannot get a loan, according to the "How America Views Homeownership" survey by Ipsos Public Affairs for Wells Fargo & Company.

"Our survey found Americans still view homeownership as an achievement to be proud of," says Franklin Codel, head of Wells Fargo Home Mortgage Production.

But "our survey also suggests we have an opportunity as lenders, nonprofit agencies and real estate agents to better inform Americans about credit ratings, mortgage costs and housing affordability," he adds.

Financial foundation

The "How America Views Homeownership" nationwide survey of 2,017 adults also revealed many Americans report that their financial houses are in order, which improves their ability to buy a home. For example:

• 82 percent of respondents said that they understand how to manage their personal finances; the same proportion, 82 percent, agreed that they generally do not spend beyond their means

• 63 percent of respondents have a "rainy day fund," including more than half of the millennial respondents, ages 18-34

• 27 percent said that they tend to spend their money and not think twice about it

Home buying: What consumers know

• 74 percent of the survey respondents "know and understand" the financial process of buying a home, but other answers suggest they may not understand all their options.

• 30 percent believe only individuals with high incomes can obtain a mortgage.

• 64 percent believe they must have a "very good" credit score to buy a home.

• While 64 percent said that they're knowledgeable about downpayments; nearly half (44 percent) think they need a 20 percent downpayment.

• When asked to list the biggest barriers to homeownership, a lack of downpayment funds ranked first, especially for respondents aged 18-34.

• Nearly half (44 percent) know nothing or very little about the closing costs required.

• About half feel they don't have access to homes that fit their financial needs.

"It's important for prospective homebuyers … to ask lenders and real estate agents questions about available options, such as downpayment assistance or FHA loan programs or VA loans for veterans," says Codel. "Ninety-five percent of survey respondents said they want to own a home if they don't already."

© 2014 Florida Realtors®

IRVINE, Calif. – Dec. 4, 2013 – Overall U.S. foreclosure activity is down 23 percent year-to-date through October 2013, but foreclosure activity on homes in the $5 million-plus value range is up 61 percent from the same time period in 2012, according to RealtyTrac.
 
The total number of these ultra high-end properties with a foreclosure notice in 2013 is relatively miniscule – fewer than 200 compared to 1.2 million total properties in all value ranges with foreclosure notices this year – but each represents a much bigger potential loss for the foreclosing lender compared to a median priced home.
 
The trend doesn’t necessarily mean that more high-end homeowners are in financial trouble. According to RealtyTrac’s analysis, more lenders may now be financially stable enough to comfortably weather some big-ticket losses. In addition, a stronger housing market means even ultra high-end homes could attract more prospective buyers, allowing lenders to recoup more of their losses on the jumbo loans gone bad.
 
“A home selling for $5 million or above represents the ultra-luxury end of the market, and so far in 2013, we’ve had 34 properties close over that price with the average sale being $7.7 million,” says Emmett Laffey, CEO of Laffey Fine Home International, covering the five boroughs of New York. “Any foreclosure properties in this type of ultra-luxury market usually get purchased very quickly since there is one thing all super rich buyers want – an outstanding deal on a real estate transaction, and in most cases foreclosures of this magnitude come with several million more dollars of built-in value.”
 
The delayed rise in foreclosure activity on these high-end properties may not all be instigated by the lenders, however. Some of the homeowners may have had the means to hold out against foreclosure longer than other homeowners.

Florida high-end foreclosures

Florida and California together accounted for more than 60 percent of all ultra high-end foreclosure activity so far in 2013. In both states, a combination of a severe housing boom and bust over the past seven years along with a plethora of high-value coastal property, have resulted in relatively high numbers of high-end foreclosures – although high-end foreclosure activity in California was actually down compared to a year ago.

By metro area, South Florida (Miami-Dade through Pompano Beach) landed the No. 1 spot for high-end foreclosures with 47 properties in 2013 – a 488 percent increase since 2012. The Orlando-Kissimmee area ranked third with 12 high-end foreclosures – a 500 percent increase over 2012.
 
Because a listing price isn’t consistently available on properties in foreclosure, for the purposes of this analysis, RealtyTrac categorized properties into value ranges using three different data points available in its real estate database: estimated amount of outstanding loans on home; estimated market value; and assessed value from the tax assessor. If any of the three amounts was above $5 million, the property was included in the $5 million-plus category.

© 2013 Florida Realtors®

New Refinance Program to Help More Floridians

During a recent gathering of real estate professionals, hosted by University of Miami Law School, discussions were centered on the long list of government initiatives aimed at fixing the housing market. The Home Affordable Modification Program, for example, has had a very minimal impact in Florida.

New initiatives, like the revamped Home Affordable Refinance Program is aimed at addressing some of the shortcomings of past efforts. The new HARP, announced last week by President Obama, will open up the government refinance initiative to people who owe significantly more on their mortgages than their properties are worth.

New  Fannie Mae Updates can be found at:

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/sel1009.pdf

Pinellas Residential 10 May 09-May % Change

Total Property Sales 1,276 971 31.41%

Total Dollar Volume $232,300,200 $191,934,000 21.03%

Average Sales Price $182,100 $197,700 -7.89%

Median Sales Price $132,300 $140,000 -5.50%

Total Active Listings 11,645 13,144 -11.40%

Total Pending Listings 1,076 1,259 -14.54%

Month Supply of Inventory 9.9 15.4 -35.71%